Pay ratio disclosure – Why public companies must disclose a CEO’s compensation

Description

Abstract: In August 2015, the SEC finalized its pay ratio disclosure rule, which requires a public company to disclose the ratio of its CEO’s total annual compensation to that of its “median employee.” Although the first disclosures aren’t required until 2018, this article explains why companies should begin to prepare now. A sidebar discusses pay ratio disclosure as it’s generally required by all U.S. public companies subject to the Summary Compensation Table disclosure requirements of Regulation S-K, Item 402(c).